Moving

With the advent of ending its electricity rate freeze thissummer and moving to a more volatile pricing environment, San DiegoGas and Electric Co. was given a new incentive rate mechanism todetermine its future utility revenue needs by California regulatorslast week. Current rates will not change because of the new”performance-based ratemaking” (PBR) system, but the system will beused the next time the regulators review SDG&E’s performance.

An open season for up to 100 MMcf/d of firm transportationcapacity in the Sacramento Delta region of northern California isset for May 10 through the end of June by Western Gas Resources(WGR), which is planning to make an existing gas pipeline,gathering and delivery system an open-access, state-regulatedoperation. The state regulatory process to make the change willbegin June 8 with a pre-hearing conference in San Francisco.

Guardian Pipeline, a planned new interstate natural gas pipelineto serve northern Illinois and southern Wisconsin, is movingforward with an open season that will begin May 4. The pipelinewill have a minimum capacity of 650 MMcf/d and will be expandable,depending on the market response, to a capacity of up to 1.1 Bcf/d.It already has signed a firm precedent agreement with Wisconsin Gasto transport 650 MMcf/d, beginning Nov. 1, 2002, the project’splanned in-service date. The pipeline will transport gas frominterconnections with Alliance, Northern Border, NICOR, Midwestern,NGPL and the proposed Tristate Pipeline near Joliet, IL, tonorthern Illinois and southeastern Wisconsin markets. It willconsist of 24,000 hp of compression and 147 miles of 36-inch pipeextending from Joliet to the Watertown, WI area. Guardian isjointly owned by WICOR, CMS Energy Corp. and Viking GasTransmission, with each holding a one-third interest. The openseason closes June 3. For more information contact George Hass,313-436-9238.

Guardian Pipeline, a planned new interstate natural gas pipelineto serve northern Illinois and southern Wisconsin, is movingforward with the announcement that its “open season” will beginTuesday, May 4, 1999, at 8 a.m. CDT. Guardian Pipeline is jointlyowned by WICOR, CMS Energy Corp. and Viking Gas Transmission, witheach holding a one-third interest.

Texaco, Shell and Southern California Gas are moving fromopposite ends of the gas business to converge on the developingmarket for distributed generation powered by fuel cells.

The U.S. leg of the proposed Vector Pipeline has won finalenvironmental approval at FERC, moving it within one step ofbecoming certified as the first new pipeline capable of providingtakeaway transportation for the steady influx of western Canadiangas supplies entering the Chicago market. The Commission’s actioncomes in the wake of the National Energy Board’s final approval ofthe 15-mile Canadian portion of the project.

The Federal Energy Regulatory Commission has granted finalenvironmental approval to the U.S. portion of Vector Pipeline,moving it within one step of receiving certification. TheCommission’s action comes in the wake of the National EnergyBoard’s final approval of the Canadian leg of the project.

With seven scheduled days left in the present legislative session, an amendment aimed at simplifying the assignment process in Georgia’s gas deregulation law is steam-rolling its way through the legislature. House Bill 822 passed through the state House of Representatives with a 164-0 vote last Tuesday, and after a brief stay in the hands of the Senate Finance Committee, it is on its way to the Senate floor for approval.

The Colorado Senate last week approved and sent on to the Housea bill to deregulate retail gas distribution in the state. Thebill’s sponsor, Sen. David Owen, R-Greeley, said he expects thelegislation (SB 99-153) to pass this year.